Following months of deliberation, the Sparks City Council will be readdressing the issue of an exclusive franchise agreement with Waste Management Monday and possibly increasing residential garbage rates by $1.21 per month effective Feb. 1.

The city collects 5 percent of the gross receipts from Waste Management of Northern Nevada's collection activities in the city of Sparks. The current agreement met its final end in July as the franchise agreement expired amid concerns over limited competition in the market. After reaching an impasse in July, the two parties went back to the negotiating table and will be addressing the issue again Monday.

Waste Management is asking for the rate increase to be included in the new agreement because the company claims it cannot recover its costs on residential garbage collection, according to staff reports. The staff report also states that residential rates are subsidized by commercial trash collection, which is not regulated by the terms of the new agreement. The collection of commercial trash is open to third-party trash haulers. The proposed agreement would make Waste Management the exclusive contractor for garbage collection in Sparks, but it would not regulate other companies’ ability to pick up trash or construction waste.

According to Waste Management spokesman Justin Caporusso, company officials would not comment on rate structuring pending council action.

The rate increase would be in addition to an annual price index adjustment, which would be applied in May and tack on no more than 93 cents to customers’ monthly bills.

According to staff reports, the proposed agreement would also give Sparks residents the option of using a 64-gallon container, instead of the regular 96-gallon container, at a reduced price. If the agreement is approved the smaller container would cost about $14.91 per month as opposed to the larger can's $15.44 per month. Before the rate increase the 27,051 residential customers in Sparks were paying $14.23 monthly for their garbage collection.

"We really would like to extend the menu of services," said Dan Marran, purchasing manager for the city of Sparks. "While the resident may not have the choice about who they have collecting their trash we can provide other options."

Marran has been representing the city in negotiations with Waste Management and said that the proposed agreement is supported by both parties.

"Since the last council action in July city staff has been working really hard with Waste Management," Marran said. "It really is an agreement."

Waste Management echoed that sentiment in an official statement released Wednesday.

"Waste Management has worked with Sparks City Staff to achieve a proposal that is agreeable to the City of Sparks," the statement said. "We have agreed to the new conditions and service requirements that city staff and council members provided and requested from Waste Management in the previous city council meeting. We look forward to continuing to provide service to the residents of Sparks."

In addition to the 27,051 residential customers, the city of Sparks has 268 commercial garbage customers and 64 industrial garbage customers, Marran said. The city of Reno has 60,061 residential customers, 1,769 commercial customers and 205 industrial customers.